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1. Company Snapshot

1.a. Company Description

Global Medical REIT Inc.is net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share.

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1.b. Last Insights on GMRE

Global Medical REIT Inc.'s recent performance was driven by several positive factors. The company's proactive debt restructuring efforts have extended debt maturities, mitigating refinancing risk and improving balance sheet flexibility. Additionally, Global Medical REIT has proactively redeployed capital into higher cap-rate assets, maintaining low tenant concentration risk and benefiting from geographic diversification. The company's forward P/FFO of 8.3 is 35% below sector average, suggesting undervaluation. Furthermore, Global Medical REIT's diversified healthcare portfolio, 95%+ occupancy, and 2.1% annual rent escalators support steady cash flows and modest growth.

1.c. Company Highlights

2. GMRE's Q3 2025 Earnings: A Strong Performance with a Focus on Shareholder Value

Global Medical REIT's (GMRE) Q3 2025 earnings report demonstrated a robust financial performance, with funds from operations (FFO) reaching $14.5 million, or $1 per share, and adjusted FFO totaling $16.2 million, representing a 4% growth on a per-share basis. The company's actual EPS came out at $1.12, beating estimates of $1.05. The year-to-date funds available for distribution stood at $39.2 million, resulting in a payout ratio of 84%. The weighted average effective interest rate on its new swaps is approximately 4.8%, a relatively stable rate in the current market.

Publication Date: Nov -20

📋 Highlights
  • Strong Same-Store NOI Growth:: Portfolio delivered 2.7% same-store NOI growth, driven by successful re-leasing and absorption of vacant space.
  • Debt Refinancing & Balance Sheet Flexibility:: Recast revolver to 2029 and extended $350M Term Loan A, with a weighted average effective interest rate of 4.8% on new swaps.
  • FFO & AFFO Performance:: Q3 FFO of $14.5M ($1/share) and adjusted FFO of $16.2M (4% per-share growth), with a 84% payout ratio year-to-date.
  • Investment Pipeline & Capital Recycling:: Evaluated $11.5B in transactions, with $500M in near-term deals offering 7.5–8% first-year cash returns and a target leverage of sub-6x.
  • Occupancy & Strategic Expansion:: 95.2% portfolio leased (96% expected by year-end) and a focus on selling underperforming assets to reinvest at a positive spread in healthcare infrastructure.

Operational Highlights

The company's asset management team reported a same-store NOI growth of 2.7%, driven by positive year-to-date absorption and successful re-leasing of its 85,000 square foot facility in Beaumont, Texas. The portfolio was 95.2% leased with a remaining term of 5.3 years, indicating a stable and predictable income stream. As Mark Decker mentioned, the occupancy rate is expected to reach 96% by year-end, driven by leases underway, not assuming any sale of vacant properties.

Investment and Capital Allocation

GMRE evaluated $11.5 billion in prospective transactions and has a near-term pipeline of almost $500 million in potential deals with first-year cash returns ranging from 7.5% to 8%. The company is considering selling assets to deleverage and recycle capital, with a target leverage of sub-6x. GMRE could potentially acquire $200 million to $500 million in external growth per year, funded by permanent capital and longer-term debt. The disposition pipeline is around $50 million to $100 million, with the goal of executing on 20% to 40% of its acquisition pipeline.

Valuation and Outlook

With a P/E Ratio of -225.0 and a P/B Ratio of 0.87, the market seems to be pricing in a challenging environment for GMRE. However, the company's Dividend Yield stands at 11.46%, which could be attractive to income-seeking investors. Analysts estimate next year's revenue growth at 3.5%, indicating a relatively stable outlook for the company. Implied Q4 guidance is $1.13 to $1.23, driven by a combination of lease-up activity, rent growth, and other opportunities.

Strategic Plan and Future Prospects

The company is developing a strategic plan to deliver outsized shareholder returns, focusing on capital allocation, balance sheet management, and execution within the healthcare infrastructure sector. GMRE is exploring opportunities to delever, buy back stock, and acquire accretive assets, while maintaining a leverage-neutral basis. The company may also explore investments outside of traditional medical office buildings, leveraging their underwriting skills and knowledge of the business to craft a competitive edge in the broader healthcare sector.

3. NewsRoom

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Global Medical REIT Inc. Announces Dates for 2025 Fourth Quarter and Year-End Earnings Release and Webcast

Feb -11

Source: businesswire.com

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Global Medical REIT Inc. (NYSE:GMRE) Receives $41.50 Consensus Price Target from Brokerages

Feb -08

Source: defenseworld.net

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Global Medical REIT Inc. Announces Strategic Rebrand to Chiron Real Estate Inc.

Feb -03

Source: businesswire.com

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Global Medical REIT Reports Tax Treatment of 2025 Dividends

Jan -27

Source: businesswire.com

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Global Medical REIT Inc. Announces Henry Cole Stepping Down from its Board of Directors

Jan -26

Source: businesswire.com

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Global Medical REIT Inc. $GMRE Position Lessened by Cascade Investment Group Inc.

Jan -20

Source: defenseworld.net

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Analysts Set Global Medical REIT Inc. (NYSE:GMRE) Price Target at $41.50

Jan -14

Source: defenseworld.net

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Critical Survey: Global Self Storage (NASDAQ:SELF) versus Global Medical REIT (NYSE:GMRE)

Jan -07

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

Rental

Expected Growth: 3.0%

Rental growth of 3.0% driven by increasing demand for medical facilities, expansion of healthcare services, and rising healthcare expenditures. Additionally, Global Medical REIT Inc.'s strategic acquisitions and strong property management capabilities contribute to the growth.

Other

Expected Growth: 3.0%

Global Medical REIT Inc.'s 3.0% growth is driven by increasing demand for healthcare services, aging population, and strategic acquisitions. Additionally, the company's focus on medical office buildings and outpatient facilities, which are less susceptible to economic downturns, contributes to its stable growth. Furthermore, the REIT's diversified tenant base and long-term leases provide a steady income stream, supporting its growth momentum.

7. Detailed Products

Medical Office Buildings

Global Medical REIT Inc. acquires and owns medical office buildings, providing healthcare providers with high-quality facilities to deliver patient care.

Surgical Centers

The company invests in ambulatory surgery centers, offering outpatient surgical procedures and diagnostic services.

Specialty Hospitals

Global Medical REIT Inc. owns and operates specialty hospitals, focusing on specific medical specialties such as rehabilitation, psychiatric care, and long-term acute care.

Medical Research and Laboratory Facilities

The company invests in facilities supporting medical research, laboratory testing, and biotechnology innovation.

Behavioral Health Facilities

Global Medical REIT Inc. owns and operates facilities providing mental health and substance abuse treatment services.

8. Global Medical REIT Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Global Medical REIT Inc. is medium due to the availability of alternative investments in the healthcare industry.

Bargaining Power Of Customers

The bargaining power of customers for Global Medical REIT Inc. is low due to the fragmented nature of the healthcare industry and the lack of concentration among customers.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Global Medical REIT Inc. is medium due to the presence of a few large suppliers in the healthcare industry.

Threat Of New Entrants

The threat of new entrants for Global Medical REIT Inc. is high due to the low barriers to entry in the healthcare industry and the increasing demand for healthcare services.

Intensity Of Rivalry

The intensity of rivalry for Global Medical REIT Inc. is high due to the high level of competition in the healthcare industry and the presence of several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 51.16%
Debt Cost 7.85%
Equity Weight 48.84%
Equity Cost 9.70%
WACC 8.76%
Leverage 104.74%

11. Quality Control: Global Medical REIT Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Universal Health Realty Trust

A-Score: 6.2/10

Value: 3.3

Growth: 3.6

Quality: 6.1

Yield: 10.0

Momentum: 5.0

Volatility: 9.3

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LTC Properties

A-Score: 6.2/10

Value: 2.7

Growth: 4.1

Quality: 6.2

Yield: 9.0

Momentum: 5.0

Volatility: 10.0

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Seven Hills Realty

A-Score: 6.1/10

Value: 7.8

Growth: 2.7

Quality: 7.6

Yield: 10.0

Momentum: 1.0

Volatility: 7.3

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Community Healthcare Trust

A-Score: 5.8/10

Value: 6.6

Growth: 2.8

Quality: 5.3

Yield: 10.0

Momentum: 2.5

Volatility: 7.3

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Global Medical REIT

A-Score: 5.7/10

Value: 7.2

Growth: 4.1

Quality: 3.3

Yield: 10.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

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Diversified Healthcare Trust

A-Score: 4.9/10

Value: 8.1

Growth: 2.7

Quality: 3.0

Yield: 3.0

Momentum: 9.5

Volatility: 3.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

35.98$

Current Price

35.98$

Potential

-0.00%

Expected Cash-Flows